Frequently asked questions about buying
in Cyprus
1.
As a non-Cypriot what I am allowed to buy?
Compared to many countries buying property
in Cyprus is very easy. As a non-Cypriot you are entitled
to buy a freehold property for your personal use either:
a)
An apartment or a house or
b) A villa on a building site not exceeding 4000 sq.m
or
c) A piece of land not exceeding 4000 sq.m for the purpose
of erecting a house within a reasonable time frame.
2.
What are the prices, the terms of payment and Mortgage Finances?
Prices
depend on size, location and specifications. To get more
information you may contact our Sales Department.
Banks can offer mortgage facilities in connection with the
purchase of the property. The maximum amount that can be
borrowed is the equivalent of 70% of the purchase price.
Facilities cannot be arranged in Cyprus Pounds. A first
mortgage will be required and the mortgage will be granted
for 10 years maximum period. Normally the interest rate
charged will be 2.5% above sterling rate or dollar prime
rate. There is also an additional arrangement fee of 1%
payable on the amount of the advance.
3. Is the property freehold or leasehold?
It is freehold. The system of leasehold is almost unknown
in Cyprus.
4.
How does the transfer of the property take place and how
and at what cost do I get possession of the title?
Transfer
of ownership takes place by a simple process of registration
at the Land Registry Office and the issuing of a title deed
after completion and delivery. This can be done either by
you personally or by a Power of Attorney to your Solicitor.
A prerequisite for registration, in the case of non-Cypriots,
is evidence that the property has been paid for with foreign
exchange and approval by the Council of Ministers of Purchaser's
application to buy property in Cyprus. These formalities
can be taken up by our company on behalf of our clients,
free of charge, as part of the agreement.
However, before the registration of the completed property
the purchaser should pay the transfer fees, which are payable
to the Land Registry office.
The transfer fees range is shown on the following table:
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Accumulated Transfer
Fees (CYP£)
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e.g. Property valued £ 50.000 CYP the purchaser
should pay £ 1.500 CYP and for £ 100.000 the
amount of £ 4.000 CYP.
5.
Are any after sales services available?
Yes, Our After Sales Department provides assistance to
our clients for Electricity, Water and Telephone connections
and we also can arrange the following services:
- Property Management
- Car leasing or purchasing
- Furniture and Appliances purchasing
- Interior Decorating
- Cleaning, Gardening and Pool Maintenance Services
- Home Owners Insurance
- Life and Medical Insurance
- Car Insurance
- Moving
to Cyprus
And many more …
6. Are there any fees payable over and above the price
of the property for legal/agency work/Stamp Duty?
There
are no agency fees and no legal fees needed to be paid as
the normally required legal work is performed by our legal
department without any extra charge. If a local lawyer is
employed however fees are most reasonable. In order to avoid
the payment of a fine, the purchase contract should be stamped
within 30 days of its' signing at the rate of 1.5 per thousand
up to CYP£ 100.000 and thereafter at the rate of 2.0
per thousand. The legal system in Cyprus is similar to the
British legal system.
7. What expenses has the owner of the flat got to meet?
What is the tenant's share?
In
Cyprus there are no rates as known in most countries in
Europe. If a person has properties registered on his name
where the market value exceeds CYP£ 100.000, there
is a property tax on the excess value.
The annual immovable property ownership tax imposed by the
government is levied on the market value of the property
as of 1st January 1980 at the following rate:
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Cumulative Property
Tax (CYP£)
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The owner apart from the expenses of telephone, water
and electricity for which there are separate meters, has
to meet a proportion of the common expenses e.g. for the
lightening and cleaning of the common facilities and the
maintenance of the lift (and of course the upkeep of a garden
and a swimming pool where there is one). Common expenses
are comparatively insignificant - for a 2-bedroom flat they
do not normally exceed £ 25 Cyprus pounds per month
on average.
Common expenses administration can be arranged by a clients
committee or by the Customer Service Department.
8. What duty free items are allowed for the non-Cypriots
living in Cyprus?
Personal effects, household goods and furniture can be
imported free of any taxes by immigrant retirees, provided
they are for personal use and have been used for a reasonable
amount of time - approximately one year. There are no import
duties on cars and for retired couples there is an additional
concession of two duty free cars.
9.
Are there health insurance schemes available?
Yes,
there are health insurance schemes at a very reasonable
price, depending on age, state of health and so on.
10.
Is the property insured?
Hadjidemosthenous Ltd provides comprehensive insurance
cover for fire and associated hazards until the property
is transferred to the owners' name. The insurance costs
vary from £30 to CYP£100 per year, depending
on the value of the property insured. Insurance for the
contents of the property is the owners' responsibility and
an approximate cost of CYP£1.85 per thousand of insured
contents value
11.
Are there reputable international schools in Cyprus?
Yes! There are many reputable schools in all towns. In
Pafos, there is a well established school with very good
results and achievements in exams necessary for entry to
a British University.
12. Can I sell the property easily? Will I be able to
take the proceeds of sale out of Cyprus?
You
can sell the property at any time and with no restrictions
either through our office or through an Estate Agency.
The equivalent of the full purchase price can be remitted
immediately, while the balance reflecting an increase in
its value can be sent overseas at the rate of CYP£
50 000 per year, plus the interest earned during the year,
starting from the year after the sale. Property Sales in
Cyprus are subject to Capital Gains Tax at a rate of 20%
on the gain, however the first CYP£ 10.000 is exempted.
13. Is there a double taxation relief-agreement between
Cyprus and other countries?
Yes, such agreements exist with most countries of the E.C.
and with several other countries all over the world.
14. What is the procedure of getting Temporary Residence
in Cyprus?
Temporary residence is easy to obtain once the applicant
fulfils certain requirements. To apply for temporary residence
a visit to the local immigration office should be arranged
and produce the following documents:
- Sales Contract
- Bank Statement
- Three photos
- Passport Copies
- Application fee of CYP£20
- Letter of guarantee of CYP£300 obtained from your
Bank in Cyprus
15.
Is the Pension subject to Tax payment?
Yes it is! According to our tax system you are obliged
to declare your income from pension. Individual non-Cypriot
residents are taxed on a flat basis of 5% per annum on pension
and investment income brought into Cyprus. In some circumstances,
exemptions totalling up to CYP£4.000 per person or
CYP£8.000 per married couple may apply.
